Make-to-Stock is the Supply Chain Configuration Strategy which uses forecasts, planning or planning derived information to drive execution processes in lieu of customer orders. In practice this means stock is assigned to orders late in the supply chain: generally at the time of picking orders for shipment to customer orders or customer-located inventory replenishment. For inventory transactions only the Item Number is recorded*.
Make-to-Stock is often mistaken for a process that cannot support a zero-inventory policy. This is a misconception. The example below explains how min/max replenishment can be configured to support a zero-inventory policy:
The settings will result in:
The effect of this configuration is that new orders generate replenishment demand in production/procurement - and customers will need to wait for the Plan, Make or Source processes to complete before the Deliver process can complete the order. This process configuration is Make-to-Stock as demand is aggregated and inventory is replenished.
Make-to-Stock depends heavily on planning information in anticipation of customer orders.
*) Some use cases require serial-, lot- or batch numbers to be recorded.Community Importance Rating:
|A103||Segment Supply Chains||3||A103|
|A113||Identify Strategic Supply Chain Capabilities||3||A113|